IMR300 – Lecture 2

The cultural environment of Global markets

Geography

Location Topography

TOPOGRAPHY

Mountain Desert

Climate and topography

the broader and more important elements of geography

Altitude, Humidity Temperature extremes

Affect the uses and functions of products and equipments

Example 1

Taiwan Middle east

Example 2

Germany Spain 1600 rpm 500 rpm

Tropical rainforest of South America

Commercial route National and regional growth Trade and communication

Geography - Economic Growth

Association between landlocked countries and level of economic development

Countries with unfriendly climates associated with economic stagnation

Countries that suffer the most from major calamities are among the poorest in the world, which influences ability to market products

Industrialization

Economic growth

Environmental issues

Global environment

a global issue rather than a national one

ozone layer, the greenhouse effect, the loss of biodiversity, and ocean pollution   

Social Responsibility & Environmental Management

Firms required to be socially responsible especially in foreign markets

Firms should comply regulations against environmental pollution and  disposal of hazardous waste

Economic development and protection for the environment can coexist

The CSR in 10 Report

based on research conducted through interviews with over 70 experts, knowledgeable of and working with CSR issues in the Asia Pacific region in 2009.

Top 10 issueshttp://www.csr-asia.com/report/report_CSRin10_2009.pdf

1. Climate change2. Corporate governance3. Labor and human resources4. Environmental issues5. Partnership with stakeholders6. Regulations and leaderships from government7. Community investment8. Product responsibility9. The professionalization of CSR10. Bribery and corruption

1. Climate change

Dominating CSR agendas for the next ten years.

Reducing their own carbon impacts as well as working in partnerships

There will be a new emphasis on energy efficiency.

2. Corporate governance

companies are governed and the way that decisions are made.

New corporate governance - economic sustainability

Pressure from a new breed of socially responsible investors will increase the pressure on businesses to behave in an ethical way.

3. Labor and human resources

appropriate wages levels, discrimination, workplace conditions and child labor are still important.

A new emphasis on decent work in a context of protecting human rights is emerging.

4. Environmental issues

part of company’s reputation and brand.

availability of clean and safe water.

Loss of biodiversity and changing land-use

New infrastructure developments

5. Partnership with stakeholders

Stakeholder engagement

increased collaboration with both government and local communities.

how they are working with others to tackle the sustainable development agenda through innovative community investment strategies.

6. Regulations and leaderships from government

increased pressure from governments via regulations.

Other regulatory pressure is likely to come from stock exchanges, securities regulators and institutions tasked with tackling health and safety.

7. Community investment and pro-poor development

positive impacts on the communities

pro-poor community investment projects, micro-finance initiatives and programs to encourage entrepreneurship.

Contributing to poverty alleviation and community health initiatives will be seen as an important part of the wider agenda for business

8. Product responsibility

product quality, product safety and health concerns

Better labeling,

more information on country of origin, ingredients carbon impact

9. The professionalization of CSR

An increase in professional courses and better quality education on CSR

understanding of what CSR is the value of having a CSR function within

the organization.

The professionalism and the credibility of CSR managers.

10. Bribery and corruption

reduce the amount of economic activity and continue to have a negative impact on the poor.

However, at the same time there will be increasing investigation and reporting of bribery, scandals, often supported by governments,

Increasing the reputational risks to companies seen as complicit in such irregularities.

The institutions influencing CSR

1. Governments and politicians2. NGOs and civil society organizations3. Companies themselves4. Investors and financial institutions5. Consumers6. International and inter-governmental institutions7. Media8. Educational institutions9. Employees and trade unions10. Internet, online community

Environmental management

Managing the productive use of natural resources without reducing their productivity and quality.

Administrative functions that develop, implement, and monitor the environmental policy of an organization.

Environmental management

Cleaner and sustainable production (CP);

Water management;

Persistent Organic Pollutants (POPs) and Persistent Toxic Substances (PTS)

Pollution hotspots

http://news.bbc.co.uk/2/hi/science/nature/4083331.stm

Spain: Major oil spill The Prestige oil tanker sank near northern Spain

on 19 November 2002, polluting about 3,000 km (1,800 miles) of coastline.

The spill is estimated to have killed 300,000 seabirds, making it one of Europe's worst wildlife disasters.

Gulf of Mexico, US: Dead zone

The Gulf of Mexico's dead zone has been an annual problem for the last 30 years, because farmers in the Mississippi watershed are using large quantities of nitrate-based fertilizers.

Bhopal, India: Industrial accident

The enormous gas leak from a Union Carbide chemical factory in the Indian city of Bhopal in 1984 was one of the world's worst industrial accidents.

Nearly 3,000 people died in the first few days and tens of thousands suffered terrible side-effects.

Ukraine: Chernobyl disaster

The world's worst nuclear accident occurred in what is now the Ukraine on 26 April 1986.

A reactor exploded in Chernobyl's nuclear power station, killing at least 30 people and forcing the evacuation of 135,000 more.

Ukraine: Chernobyl disaster